salvage value

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Salvage value

Scrap value of plant and equipment.

Residual Value

In accounting, an estimate of the value of an asset at the end of its depreciation. For example, a firm's computer depreciates each year. When it breaks down or becomes obsolete, it has a residual value; it is calculated by the best guess of the net cash inflow when it is sold at the end of its life. It will never be above the blue book value.

In price regulated industries, the residual value may be a negative value because it includes the net cash outflow in removing the asset from where it was used. For example, nuclear energy plants must store the nuclear waste at the end of their useful life. This cost is a contributing factor in the residual value. It is also called the salvage value or scrap value. See also: Absolute Physical Life, Obsolescence.

salvage value

salvage value

see SCRAP.

salvage value

The estimated value a property will have at the end of its useful life. (1) It is an important consideration when demolishing a structure in order to build a new one.Especially with older buildings,architectural components such as molding,trim,doors and hardware,windows,and even antique brick can command a very high price.(2) It was important at one time for income tax depreciation,but there is now a different system in place,the modified cost recovery system,which does not rely upon establishing a salvage value.

Salvage Value

The estimated value that will be realized upon the sale or other disposition of an asset at the end of its useful life.
References in periodicals archive ?
The following table presents the estimated future asset retirement obligations and estimated net salvage values at various discount rates:
The court also stated, "[T]he paintings could be depreciated if [the] petitioner established their economic useful life and salvage value.
With the tax credit, the hybrid car offers both higher annual after-tax cash flows ($10,000) and a higher salvage value ($5,000) for hybrid cars, while the salvage value for gas-powered cars drops from $4,000 to $3,000.
Also, the asset's salvage value will be zero, the firm's weighted average cost of capital is k = 10%, the corporate tax rate is 33%, and straight line depreciation over the 20 year economic life of the asset is used by both the firm and the tax authorities.
943 Net value of calf 643,059 1,020,072 Value at first freshening 5,800,000 6,000,000 Salvage value 3,990,000 2,768,139 Net percentage of milk value 0.
Therefore, the distance function d(i, j) represents the net profit associated with implementing the policy denoted by arc (i,j), by calculating the difference between the total revenue generated by the tucking equipment and the salvage value obtained and deducting from it all relevant costs (purchase costs and maintenance costs for the life of the equipment).
The 5,500-tonne cargo - which has been lying 1,000 metres below sea-level since the Francois Vieljeux sank off the north coast of Spain nearly 30 years ago - has a net salvage value of $30m (pounds 15.
To top it all, I'm told elephant get the salvage value of the car after settlement as well.
The salvage value of these stores works out to be enormous when you just open up your horizons a bit and see all of the possibilities.
This classification does not mean that the asset has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future.
5 per watt but then they have a much shorter lifetime, would incur a high replacement cost and almost zero salvage value.
For example, a $20M investment with a 10-year life and zero salvage value yielding average cost avoidance, less depreciation expense of $1M per year, would yield an average return on investment (AROI) of 10 percent.